Shiba Inu (SHIB) has just caught the attention of analysts, who are predicting a possible breakout based on a technical formation. According to market analyst Javon Marks, SHIB looks like it has broken out of a Falling Wedge pattern, which could set the stage for a price increase.
If this breakout holds true, SHIB might skyrocket over 422%, possibly reaching a new all-time high of $0.00008841. However, certain price resistance levels must be cleared before any upward movement can happen.
$SHIB (Shiba Inu) in a larger sense looks to currently broken out of an extremely notable Falling Wedge pattern and prices could be set for a run to new All Time Highs in result!
This run could consist of an over 422% increase to $0.00008841 and higher… pic.twitter.com/sPiwaRugrr
— JAVON⚡️MARKS (@JavonTM1) February 15, 2025
Falling Wedge Pattern: SHIB’s Springboard to New Highs
The current technical analysis of Shiba Inu shows the formation of a Falling Wedge pattern. This structure is seen in a series of lower highs and higher lows, signaling a potential reversal after the price breaks above the upper trendline.
The wedge formation has been forming since August 2021 and is nearing completion. If SHIB breaks out from this pattern, the price could trend higher in the coming months, with many investors viewing this as a high-risk, high-reward opportunity.
Key Hurdles: SHIB Resistance Zone
The price must clear critical resistance levels for Shiba Inu to start a confirmed uptrend. Based on data from IntoTheBlock, about 757 trillion SHIB tokens were purchased above $0.000016, with 84% of 637 trillion tokens bought between $0.000016 and $0.000024.
Source: IntoTheBlock
These investors are currently “out of the money,” so breaking through the $0.000018 to $0.000022 range would bring most of them back into profitability.
Market Trends and Indicators
At the time of writing, SHIB’s price was $0.00001531, a decrease of 3.92% over the past 24 hours. SHIB had surged to $0.00001593 earlier in the day before the decline. This fluctuation shows the volatility inherent in SHIB’s price action.
Source: CoinMarketCap
Despite the recent downturn, the market capitalization remains at $9.02 billion, and the 24-hour trading volume has jumped by 50.70%, reaching $257.67 million. However, the circulating supply of SHIB stands at 589.25 trillion tokens, which may increase the risk of inflationary pressure.
The MACD and RSI further suggest the downward pressure on SHIB’s price. The MACD is showing a bearish signal, with the MACD line below the signal line and the histogram displaying red bars, indicating stronger selling pressure.
Source: TradingView
In the meantime, the RSI stands at 37.67, suggesting that SHIB is not yet in an oversold condition but is approaching a critical juncture. If the RSI remains above 30 and holds steady, a potential rebound could occur, possibly leading to a more favorable market environment for SHIB.